Human Resource Redeployability and Entrepreneurial Hiring Strategy: Evidence from Finnish Microdata

54 Pages Posted: 18 Feb 2021 Last revised: 13 Jan 2022

See all articles by Liinus Hietaniemi

Liinus Hietaniemi

London Business School

Simone Santamaria

National University of Singapore

Aleksandra Kacperczyk

London Business School

Juhana Peltonen

affiliation not provided to SSRN

Date Written: January 12, 2022

Abstract

The timing of talent acquisition is a central decision for new ventures. On one hand, starting small and hiring after demand is proven minimizes losses in case of low demand. On the other hand, hiring before demand is proven allows new ventures to start developing unique capabilities. We resolve this tension by proposing that the extent to which ventures hire before demand depends on human resource redeployability. We further argue that resource redeployability affects the type of employees hired. We test our theory with the population of Finnish standalone and portfolio ventures showing that portfolio entrepreneurs hire more employees early on because they have the option to redeploy them and that they hire employees with more transferable skills in order to benefit from the redeployment.

Keywords: entrepreneurship, human capital, hiring strategy, resource redeployment, new ventures

JEL Classification: M13

Suggested Citation

Hietaniemi, Liinus and Santamaria, Simone and Kacperczyk, Aleksandra and Peltonen, Juhana, Human Resource Redeployability and Entrepreneurial Hiring Strategy: Evidence from Finnish Microdata (January 12, 2022). Available at SSRN: https://ssrn.com/abstract=3764531 or http://dx.doi.org/10.2139/ssrn.3764531

Liinus Hietaniemi (Contact Author)

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

Simone Santamaria

National University of Singapore ( email )

1E Kent Ridge Road
NUHS Tower Block Level 7
Singapore, 119228
Singapore

Aleksandra Kacperczyk

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

Juhana Peltonen

affiliation not provided to SSRN

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